FirstService (NASDAQ:FSV) & MJ (OTCMKTS:MJNE) Critical Comparison

FirstService (NASDAQ:FSV) and MJ (OTCMKTS:MJNE) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares FirstService and MJ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstService	$5.56 billion	1.12	$145.05 million	$3.54	38.42
MJ	N/A	N/A	N/A	N/A	N/A

FirstService has higher revenue and earnings than MJ.

Institutional & Insider Ownership

69.3% of FirstService shares are held by institutional investors. 35.9% of MJ shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for FirstService and MJ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstService	0	3	8	0	2.73
MJ	0	0	0	0	0.00

FirstService currently has a consensus price target of $197.22, suggesting a potential upside of 45.01%. Given FirstService’s stronger consensus rating and higher probable upside, research analysts clearly believe FirstService is more favorable than MJ.

Profitability

This table compares FirstService and MJ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FirstService	2.92%	17.91%	5.58%
MJ	N/A	N/A	N/A

Risk & Volatility

FirstService has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, MJ has a beta of -0.65, indicating that its stock price is 165% less volatile than the S&P 500.

Summary

FirstService beats MJ on 9 of the 10 factors compared between the two stocks.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.